House prices soared 2.4% in June

UK house prices rose by 2.4% in June, according to official government data, confirming data from mortgage lenders and estate agents of a post-lockdown surge in the housing market.

The monthly UK House Price Index compiled by the Office for National Statistics from Land Registry data found that average UK prices rose by 2.4% in the month, seasonally adjusted, to hit £238,000 in June.

The rise equates to a 3.4% year-on-year increase on the level in June 2019, and takes prices to an all-time high.

The rise follows a marginal fall of 0.1% in May.

The figures cover the period prior to the introduction of a stamp duty exemption for all house sales up to £500k in value, since when estate agents and mortgage lenders have reported a further acceleration in market activity.

However, the ONS said the sharp increase could partly reflect “unusual” conditions in the market as lockdown restrictions were lifted, and added that it was possible the Index would be subject to “larger revisions […] than usual”.

Jonathan Hopper, chief executive of estate agent Garrington Property Finders, said the figures gave official confirmation that the surge in property prices was “a boom and not a blip.”

He said: ““The scale of the acceleration can’t be overstated. Not even during the frothiest days of the pre-financial crisis boom did prices jump so far, so quickly.”

Marc von Grundherr, director of agent Benham and Reeves, said: “We’re now starting to see the monumental increase in buyer demand that flooded the market in recent months translate into solid house price growth where sale completions are concerned. This is undeniable evidence that the UK market has broken free from the shackles of pandemic decline and has accelerated back to full health at a quite remarkable speed.”